Mumbai-based realtor Suraj Estate Developers Limited’s will launch its maiden Initial Public Offering on December 18 at a price band between ₹340 to ₹360 per equity share. The issue will close on December 20.
The public issue of face value of ₹5 per equity share is entirely a fresh issuance of equity shares worth ₹400 crore with no Offer for Sale (OFS) component. Investors can bid for a minimum of 41 equity shares and in multiples 41 equity shares thereafter. The floor price is 68 times the face value and the cap price is 72 times the face value of the equity share, the company said.
Founded in 1986 by Rajan Meenathakonil Thomas, Surat Estate Developers focuses primarily on value luxury, luxury and commencial segment in South Central Mumbai in micro-markets of Mahim, Matunga, Dadar, Prabhadevi and Parel.
It has completed 42 projects with a developed area of 1.04 lakh sq ft. It 13 ongoing projects with a developable area of 20.34 lakh sq ft and saleable carpet area of 6.09 lakh sq ft, and has 16 upcoming projects with an estimated carpet area of 7.44 lakh sq ft, the company said.
Apart from value luxury and luxury segments, the developer has sold built-to-suit corporate headquarters for institutional clients like Saraswat Co-operative Bank in Prabhadevi, Clearing Corporation of India Ltd in Dadar, National Stock Exchange and Union Bank.
Positioned for future growth and expansion, the company holds certain strategic land parcels in Bandra West and Santacruz West for development. As of October 21, 2023, it has land reserves of spanning 10,359.77 sq m for potential development out of which 9.631.35 sq m in Mount Mary Hill in Bandra West. The company has reported EBITDA margins of 36.10%, 48.30% and 45.64% in fiscal 2021, 2022, and 2023 respectively.
Speaking at an announcement of the IPO plans, Rahul Thomas, Executive Director, Suraj Estate Developers said the company was a leader in supply and absorption in South Central Mumbai market with a 8% per cent share of redevelopment projects and 2% share in new projects.
Speaking to HT, Rajan Thomas, Managing Director, Suraj Estate Developers said, “The IPO will help us clear debt of ₹295 crore and help our future expansion plans.”